Q. I unknowingly purchased a gelding from someone who had agreed to a “first right of refusal” with the person from whom she’d purchased him. However, I’ve now been told that the seller (who I bought the horse from) did not honor the first right of refusal with the previous owner (who she purchased the horse from). I’m concerned that someone else’s agreement, which I wasn’t aware of, could threaten my ownership of the horse. I paid for the horse and have a bill of sale. Do I own the horse, and does the previous owner have a right to him?

Anonymous, California

A. This is a great question and one that I get quite often. In any other field of law, I would say that I hate (!) first-right-of-refusal in contracts, because I prefer a nice clean break and because the terms are difficult to enforce. But, in the horse industry, I get it. I’d want one if I sold my best friend, too (in fact, when I’ve personally sold horses, I’ve included this stipulation).

So, what is a “first-right-of-refusal” in a contract?

A first-right-of-refusal is an agreement that gives someone the right to purchase a horse at the exact same terms and conditions contained in an offer that the owner has received (and wants to accept) from another buyer. This is most commonly seen where Party A sells a horse to Party B, then Party B gets an offer to from Party C to buy the horse. But first, Party A must have the opportunity to buy the horse for the same price and under the same contractual obligations as Party C has offered (even if it’s years later!).

So what happens in the situation posed by our reader?

Unfortunately for the former owner of the horse that had the first right of refusal (Party A), her claim is not against you (Party C), but is against the seller (Party B). So long as you (the buyer) have a valid sale contract with your seller, I cannot imagine a scenario in which a court would order you to return the horse to the person with the first right of refusal.

Rather, that person (Party A) has a contract claim against the person that sold the horse to you (Party B), but only for monetary damages. In other words, a court might award that person with money to compensate for the horse that they did not get to exercise the first right of refusal on. But since you have valid property rights to this horse now, the court won’t simply take that horse away from you.

See why I hate the first right of refusal? This contract term is really more of a way to show the parties’ intent (which often goes a long way), but is very unlikely to be enforceable once we are in the situation posed by this reader.

Q. I serve on the board of my local saddle club, which owns a property used for horse shows, clinics, and general riding. Some events are managed by our club, but in some cases we lease the facilities out to 4-H groups and other equestrian clubs. As board members, are we liable in the event someone is injured on the club’s property or at club events?

A. The simple answer to this question depends on whether your saddle club is properly incorporated as a corporation, a limited liability company (LLC), or partnership. (For more information about legal business entities, see the U.S. Small Business Administration website.

If your saddle club’s leadership has properly formed it as a business entity, such as a corporation or LLC, you as a board member are generally protected from personal liability. If your saddle club hasn’t been properly formed as a separate business entity, you remain at risk of personal liability. You only have personal liability protection if someone has taken the necessary steps to incorporate the club (i.e., articles of incorporation, business filings with the state, etc.). I make this distinction because, if your club operates like a separate business entity but is actually an informal and unincorporated club, you could be personally liable. This is especially important to note because informal organizations structured like corporations but not officially incorporated are common in the horse industry; these clubs don’t offer their board members or membership protection from personal liability.

Where you to have a properly formed corporate entity, and someone suffers an injury, a court might issue a judgment against the entity (in this case, your saddle club), but only the entity is financially liable. Thanks to its corporate status, the club’s directors, officers, and members are not personally responsible for paying that debt. By contrast, if an unincorporated association of horsemen/women owned the premises, the courts could require the unincorporated group’s individual directors/members to pay the judgment amount out of their own pockets, thus putting personal assets at risk.

All of the above said, a director or officer of a corporation can still be held liable if he or she:

Personally and directly causes an injury or does something intentionally fraudulent, illegal, or clearly wrong-headed that causes harm;

Personally guarantees a loan or debt on which the corporation fails to make payment;

Fails to make sure that the entity files necessary tax returns; or

Comingles nonprofit and personal funds

In order to minimize the risk of personal liability, two things are absolutely vital to a saddle-club-type organization: proper insurance coverage and proper legal entity formation. If you belong to an equine organization or serve on its leadership board and have questions about your specific liability and risk, please contact an attorney for guidance.

]]>Mon, 30 Nov 2015 17:14:22 GMThttp://www.californiahorselawyer.com/home/the-liability-of-leasing-a-horse-to-a-minorThe article below is the first of our Q & A series for TheHorse.com ~

Q. I have a talented and kind 15-year-old dressage horse that is no longer physically able to train and compete at the sport’s upper levels. I’d like to share him with a committed and talented 11-year-old girl who rides with my trainer, preferably via a lease. He has a lot he could teach her, and I believe the pair would be a good fit. However, I’m concerned about the liability associated with having a child ride my horse. How can I best protect myself while also providing my horse with a second career and help this girl continue her dressage education?

A. Unfortunately, for all of us horse owners, liability will always be associated with our horses, regardless of what we do to protect ourselves. There are just some things that we cannot predict a horse will do (i.e., tripping and falling, spooking, etc.) even when we’ve known the animal for 15 years. So, when we lend or lease our horses to others, the key points to protect yourself are full disclosure, a written release of liability, and insurance coverage.Full Disclosure. In other words, if you know that your horse has a tendency to spook, bite, kick, etc., you absolutely must tell the person you’re allowing to hand your horse. If you don’t and your horse injures that person, you could be on the hook legally for failure to inform them of the horse’s dangerous propensities. Now, this doesn’t mean you need to pull out your crystal ball each morning before you let someone handle your horse—as I said, there are just some things that we cannot predict—but if you know that your horse is a biter, you must warn other people handling your horse of that known danger. If you fail to warn of a known danger, you are essentially making an already dangerous activity (horseback riding) more dangerous for the oblivious party.Written Release of Liability. It’s important for all horse owners to understand that when someone signs a release, he or she can still bring a lawsuit against you for injuries (to themselves or, in this case, the injuries to their child). But, a written release of liability serves as an excellent deterrent and, ultimately, an excellent legal defense. When someone signs a release, he is acknowledging the dangers of horse riding and handling, and representing that he is voluntarily assuming the risk of those dangers (or, in this case, assuming a risk on the behalf of their child). “Assumption of the risk” is your best defense in an equine legal dispute.A quick point on parents signing release forms on behalf of their children: Child custody laws vary by state. Where parents share joint legal custody of their child, some states only require one parent to release liability in order to assume risk for their child, where others require both parents to make the release of liability a viable defense. If you don’t know your state’s stance on this issue, err on the side of caution and require both parents to sign your release of liability.Insurance Coverage. Few people carry liability insurance on their horses (which is similar to car insurance), but if you are allowing another person to ride and otherwise handle your horse, you might consider it. In the event your horse injures a third party or damages their property, this provides coverage for defense fees, as well as pays claims for which you are legally liable during the policy period. If you’re not insured and someone is injured and sues you, you’ll pay for both your legal defense, their medical costs, and other losses out of your pocket.In summary, keep no secrets and tell no lies about the animal; have the lessee sign a release of liability assuming the risk of the dangers of riding; and consider insurance coverage.

We have recently found ourselves working on several matters that involve a common denominator: our boarding facility clients cannot locate their boarders! Their human boarders/clients, that is. Rest assured that my boarding facility clients know where each and every one of their horses are… absent some wild escape! We represent a handful of big-time boarding facilities in California, and the two facilities that are retirement-focused are both struggling with locating horse owners. Before I got into the equine legal business I had no idea that this problem occurred so regularly. I mean, it must be hard to abandon a horse, right? You can’t really leave them on the side of the road discreetly, and there isn’t an anonymous over-night drop-off that I know of, like many counties have for cats and dogs. But abandonment happens more than any of us realize, and unfortunately, the boarding facilities are left footing the bill. Another common denominator that I see is that my clients wait for too long to do something about it. Often months (or years…) go by before they get around to telling me about it. And by then, it ends up costing them more in legal fees (and costs to care for the animals in the meantime) because I need to spend more time tracking these people down. In once case, I have even had to hire a private investigator, and we still can’t find the horse’s owner! At what point will we see her on America’s Most Wanted? And so, I have a few suggestions for the horse men and women out there:1)If you own a horse, retired or not, you’ve GOT to pay for its keep until the day it dies! Reputation is everything in this industry – people won’t forget, and news like this spread faster than wildfire.2)If you are operating a boarding facility, and have a client that hasn’t paid you in 30 days, do something about it immediately upon realizing that they haven’t paid you.a.Call them.b.Write them a letter.c.Talk to their affiliates.d.Contact an equine attorney.e.Make something happen! If you do not, and wait for months… you’ll be calling an attorney for help, potentially dealing with the Sheriff Dept., and may end up paying to keep the horse indefinitely (for better or worse!) - $$$$. In short, don’t let time go by when something isn’t right, regardless of whether you are a horse owner or horse facility owner/operator. Time is always of the essence when it comes to live animals… and money.

]]>Tue, 06 Jan 2015 19:31:46 GMThttp://www.californiahorselawyer.com/home/2015-new-year-non-profit-package-dealsThe New Year is the perfect time to reset, refresh, and renew - Happy New Year!! Resolutions are in the air, and new goals and plans are made with great hope and promises of success. We want to see your equine non-profit organization succeed in 2015, so we're offering some very special rates as low as 30% off (!) through February 28, 2015 to give you a kick start!

Give us a call, shoot us an email, or order services online and we'll get in touch with to you! We're ready to help you do good things in 2015!

~ Book services before February 28, 2015 to take advantage of these special rates ~

Happy New Year!

]]>Sat, 23 Aug 2014 00:10:16 GMThttp://www.californiahorselawyer.com/home/working-student-problemsFrom Liv Gude at www.ProEquineGrooms.com: So you think you found the perfect “Working Student” position! Or perhaps it's an "internship", "apprenticeship", "assistant in training". This position is with your favorite trainer EVER, and in exchange for all of your hard work, you get a stall for your horse and lessons every other day. Or, you may receive a small apartment on the property, and even sometimes you get a stipend or pocket money. It’s all part of "paying your dues", working your way up the ladder, and “everyone in the horse industry does it.” All of those things may be TRUE - but it’s certainly not the whole picture in some cases, and it often is done to try and dance around some very serious employment issues. Your employer and you have some legal stuff to contend with. Just because you are working in exchange for something, like lessons or a stall, instead of a paycheck, does not mean you are not an employee… _________________________________ I posed this prickly question toJenn McCabe, an equine lawyer and horsewoman, not to mention former Pony Clubber and event rider! And this is how it could play out……From Jenn: Ah, the confusion of who should be categorized as an employee, and who should be categorized as an independent contractor… we meet this issue again, but in a different light! This confusion is an unfortunate reality of the horse industry, where employees are very often wrongly categorized as independent contractors. An employee is a worker that reports to someone above him, is directed by someone else, and works for that someone on a consistent schedule (i.e. Tuesday-Saturday). Sounds like the life of a working student, doesn’t it? In contrast, an independent contractor truly works for himself, running his own business and working for several different clients. For instance, the farrier that comes out to your farm every few weeks is an example of a typical independent contractor in the industry – but not the working student, who is working under his mentor’s direction. The critical factor in determining employment status is whether the employer had the right to control the manner and means of the work being performed (It does not matter if the worker is merely working for a trade of services). If so, courts (and the IRS…) have consistently held that the so-called “independent contractor” is actually an employee. Being a working student really is a great way to immerse yourself in the industry, but you’ve got to protect yourself legally along the way. The trouble with being miscategorized as an independent contractor when you are actually an employee boils down to a few major issues you may encounter:

You won’t be covered by your employer’s workers’ compensation insurance policy (if they have one). Nope! Independent contractors are not covered by these policies, so if you are injured on the job, you’ll have to jump through many hoops to convince the insurance company that you’ve been miscategorized, so that they’ll pay your medical bills. Even worse, your employer may not have workers’ compensation coverage at all, so you’ll be on your own to pay those thousands of dollars of medical bills…

You won’t be covered by your employer’s liability insurance in the event that you are liable for injury or property damage. Independent contractors generally aren’t covered by their clients’ liability policies, but are expected to have their own insurance coverage. If your employer has miscategorized you as an independent contractor, and you are not appropriately insured, you may find yourself fighting a legal battle without insurance coverage to finance the battle (or be stuck paying for someone’s financial damages out of pocket!). Will that stipend you’ll be getting cover that?

Your employer won’t deduct income tax from your paychecks. If you’re categorized as an independent contractor, you’ll be expected to report your income to the IRS as self-employment income. If you barter with your employer (which is totally acceptable!), you must report in your tax return the fair market value of the products or services you received in lieu of money (i.e. board and training). Both the employer and the worker should keep track of the hours worked and the market value of what is traded. From there, the employer should give you a W-2 reflecting the payment, and you should claim the income in your tax return. If you fail to report income, you risk audits and hefty fines for failure to report it. You can read more about the IRS's Barter Exchange guidelines here on the IRS website. There is also a great explanation here on another page of the IRS websitedetailing the Forms needed. The IRS is very clear - barter exchanges are taxable income.

Each of these issues is entirely avoidable, but it is up to you to protect yourself from these risks by communicating with your employer. Contact an attorney for advice sooner than later. Planning ahead for potential negative legal repercussions in working as a professional groom (or working student!) is vital to protecting yourself, your reputation, and your future in the industry.? Please feel free to comment here, or if you prefer to remain anonymous you can send you comments to me directly, liv@proequinegrooms.com and Jenn and I will respond! Here's more about Jenn: Jenn McCabe is an equine law attorney whose office provides business consulting and litigation services for the horse industry throughout California. Her office also provides consulting services to out-of-state equine attorneys and other California law firms. Please visit her website atwww.CaliforniaHorseLawyer.comfor more information. You can also find Jenn onFacebook here, and if you like to tweet, Jenn is on Twitter here!]]>Thu, 14 Aug 2014 23:02:07 GMThttp://www.californiahorselawyer.com/home/a-successful-horse-salepurchase

This Office gets lots of calls and emails regarding potential legal claims, but we can only take on those cases that have enough evidence to back up the claims. Unfortunately, most rejections we issue come as a result of inadequate (or entirely non-existent!) contracts. Is it because all horse-people are just trusting by nature? A little crazy, perhaps? No matter the reason, contracts are vital to a successful transaction. In an effort to remedy this on-going problem in the horse industry, I offer these tips for a smooth transaction, regardless of whether you are buying or selling:

Have the horse examined by an impartial veterinarian. Even the most impressive confirmation can hide defects that may get past a layman’s untrained eye, so a professional opinion is critical. Veterinarians complete years and years of schooling and residencies to learn how to properly identify lameness’s. Unless you went to vet school, hire a vet to perform a pre-purchase examination.

If your vet recommends X-rays, get them. A pre-purchase examination is the buyer’s opportunity to have an expert “look under the hood,” and is the best way to ensure that you aren’t buying unknown health or soundness problems. If there is something that looks suspicious to the veterinarian and requires additional information, heed his/her advice to look deeper.

Consider getting the horse’s blood drawn at the time of the exam. Sadly, it is relatively common for horses to be under the influence of painkillers, sedatives, or other drugs that can conceal lameness or enhance performance. Even if it not tested immediately, your vet can store the blood and test it if the horse’s behavior or soundness changes suddenly after your purchase.

If the horse is registered, get the registration papers at the same time you pay the entire purchase price. In other words, if you are the buyer, do not make final payment without being sure that you’ll receive the registration papers at the same time. If you are the seller, do not hand over the horse’s registration papers without being sure that you’ll receive the final payment at the same time.

A Note for Buyers: When you receive the registration papers, make sure that the description of the horse is correct, that the seller is listed as the current owner, and the seller has signed the transfer form in the correct place(s). If any of this information is lacking, RED FLAG!

Get the dang thing in writing! The whole thing – A handshake is inadequate. Without a written agreement with the parties’ signatures, it can be very difficult to prove what the terms of the agreement are. In the event that something goes awry with the horse or the sale, it can boil down to he said versus she said, which never seems to come out quite right, no matter who says!

Be specific. Your written agreement should clearly state the terms of your purchase, including any representations and warranties that the seller has made about the horse.

No exceptions. If a buyer or seller refuses to put your agreement in writing, something is not right. Pass!

The Law Office of Jennifer A. McCabe is a full service law firm that meets the legal needs of the California equestrian community, offering counsel on equine legal matters ranging from liability releases to business formation to litigation. Please contact our office for more information. Jennifer A. McCabewww.CaliforniaHorseLawyer.com Email: Jenn@CaliforniaHorseLawyer.com Phone: 831-728-2026 Fax: 831-515-5091]]>Tue, 29 Apr 2014 22:22:44 GMThttp://www.californiahorselawyer.com/home/what-insurance-is-needed-when-working-with-horsesFrom Live Gude at www.ProEquineGrooms.com: Regarding Insurance… So let’s talk about insurance. Most of us in the horse industry are involved in such a way that insurance (of some sort) can help cover our butts if something goes sideways. The sort of insurance that is needed is where it gets confusing! Here is an outline of the more prevalent types of insurance coverage. To keep things simple, let’s look at this from the different roles that a person or entity can play in the horse industry – whether you work in the industry, own property in the industry, own a horse, or otherwise. I posed this scenario to Jenn McCabe, an equine lawyer and horsewoman, not to mention former Pony Clubber and event rider! Jenn is the brains behind the California Horse Lawyer website and blog.This is what Jenn shares with us:

Regardless of whether you own the property that you are running your business on, you and your business should be separately insured.Commercial Equine Liability Insurance will cover general liability relating to operating your business. Accidents happen, and in the horse industry those accidents can be expensive, so this coverage is an important starting point if you are operating a business. If you run a facility where other people’s horses are in your care (i.e. boarding, training, etc.), you should also carry Care, Custody, and Control (CCC) Insurance. CCC coverage accounts for the risk of loss or injury to the other person’s horse in the event that something or someone harms the horse while in your care. If you own the farm or ranch property, in addition to a general property insurance policy, don’t forget Farm and Ranch Insurance to cover losses to your real and personal property (i.e. saddle theft). If you host and/or operate clinics, horse shows, and other equine events, Show and Event Liability Insurance is a necessity. This will cover you for injuries and property damage caused by the event’s activities. If you operate a riding club of some sort (i.e. 4-H, Pony Club), you should carry similar Riding Club Insurance. Finally, and perhaps the most important on this list - if you have employees, you MUST carry Workers’ Compensation Insurance. This covers your liability for any injuries suffered by your employees while on the job. This is important in any industry (because it’s the law!), but is particularly important in the horse industry due to the increased risk of injury while handling large animals. Crazy things can, have, and will happen. Be covered.

An Important Note to the Independent Contractors of the Industry:

Even if you are only a one-man band, you must insure the band. Depending on what kind of service your independent contract is for (i.e. trainers, farriers, grooms, etc.), this includes each of the types of insurance discussed above.

Individual Horse Owners:

Ah, horse owners, a unique breed of people… willing to take on a unique set of liabilities for their love of the animal. To protect yourself from the reality of the liability, horse owner’s should give some serious consideration to Horse Owner Liability Insurance. A horse owner liability policy will protect you from the expenses you’ll incur in the event that your horse injures someone or causes property damage. To protect yourself from losses in the event that your horse becomes ill, gets injured, or dies, Equine Mortality and Theft Insurance, Major Medical and Surgical Insurance, and Loss of Use Insurance are all considerations for the horse owner. Whether these different insurance policies are necessary really depend on the horse’s value, overall health, and potential. Many horse owners go without any insurance at all, but like I’ve said, Crazy things can, have, and will happen. Be covered – especially if you do not think that you can shell out a few thousand dollars to remedy any expenses that you may incur unexpectedly. If you have questions about liability, insurance coverage, or employment law, please don’t hesitate to ask. You canfind Jenn on her website here, and follow along withJenn on Twitter hereand Facebook here.Tons of great information! Disclaimer: The contents of this article are opinion only and based on the experience of the article's author and not to be construed as legal advice in any respect. Consult an attorney before taking action based on the contents of this article. Jenn McCabe, Liv Gude, and Professional Equine Grooms, LLC. expressly disclaim all liability in respect of any actions taken or not taken based on any contents of this article.

]]>Thu, 27 Feb 2014 02:30:56 GMThttp://www.californiahorselawyer.com/home/what-if-someone-asks-you-to-give-their-horse-an-injectionThe latest question posed by ProEquineGrooms.com for our "What If?" series - From Liv Gude at ProEquineGrooms.com:What if…. You are a Groom and someone has asked you to give an injection to a horse that you care for? Many Grooms have extensive knowledge of first aid, basic medical treatments, wrapping legs, and giving both IV (intravenous) and IM (intramuscular) injections. The substances that are commonly given are joint support injections and sometimes even antibiotics, analgesics (for pain management), and sedatives. But is giving injections legal for a Groom?

I posed this question to our resident legal expert and event rider, Jenn McCabe for the California Horse Lawyer. While the majority of this article is specific to California, the take home message is clear – have written permission from the horse owner, know the laws in your particular state, and have liability insurance if you are an independent contractor.

Here’s what Jenn shares with us! “This is a tricky question that I spent quite a bit of time thinking about, consulting Veterinarians about, and researching. While there does not appear to be a California law that reads, “professional equine Grooms are prohibited from administering drugs by injections,” that is really not where a Groom’s concern should be in this scenario. The more concerning issue for a non-horse-owner Groom is liability for negligence, especially if the Groom is working as an independent contractor. I don’t mean to say that your concern for liability trumps your concern for whether what you are doing is illegal. But in this case, the Veterinarian, as a professional, is the one that should be concerned with whether what they are doing is illegal… since you, the Groom, are merely acting under their professional orders to treat. Licensed veterinarians are heavily regulated on the state and federal level. In California, Veterinarians are permitted to prescribe drugs (including those administered intramuscularly and intravenously) within the context of a Veterinarian-client-patient relationship. To comply with regulations, they must label the drugs, they must keep accurate records of the drugs they dispense, etc. There is a lot of responsibility associated with ordering any drug to be administered by third party non-vet (horse owners, Grooms, etc.), which is why Veterinary school is no easy feat… and why Veterinarians ALWAYS have malpractice insurance (they can incur liability too!). A Groom that is tasked with administering drugs under the direction of a horse-owner and his Veterinarian has a duty to do so in the manner a “reasonable person” would (licensed Veterinarians are held to a higher standard of conduct). In other words, if a Groom does not exercise the sort of care that a reasonable person would and should, he exposes himself to personal liability. Grooms can avoid being liable for negligence simply by acting reasonably under the circumstances; “reasonable care” doesn’t require a super-human effort, but mere common sense in most situations. Follow directions. Act with caution and care. Ask for help when you need it. When in doubt, it is perfectly acceptable to call the Veterinarian out. And just in case, carry adequate liability insurance and have written permission from the horse owner to administer drugs.”

Now I’ll pipe in with a few more thoughts from the Groom’s side of things, now that we have heard the legal issues. When you give a horse an injection, be it IV, IM, or sub Q, you are taking a risk that not everything will turn out ok. IV injections can go into the artery instead (this is very dangerous and potentially deadly), there could be a drug reaction, vaccines can cause deadly allergic reactions. Horses can also knock you down, step on you, and otherwise fight dirty over getting a shot. Add to this the actual substance you are being asked to inject – is this a banned substance and you are a few days from the show, or actually at the show? There are more than just legal issues at play here – there are also ethical things to consider. I have seen and heard stories of Grooms being asked to do this and that at home and at shows, and for me, I want no part of it. My answer to being asked to give injections is a resounding no. Jenn McCabe is an equine law attorney whose office provides business consulting and litigation services for the horse industry throughout California. Her office also provides consulting services to out-of-state equine attorneys and other California law firms. Please visit her website at www.CaliforniaHorseLawyer.com for more information. You can also find Jenn on Facebook here, and if you like to tweet, Jenn is onTwitter here!Disclaimer: The contents of this article are opinion only and based on the experience of the article's author and not to be construed as legal advice in any respect. Consult an attorney before taking action based on the contents of this article. Jenn McCabe, Liv Gude, and Professional Equine Grooms, LLC. expressly disclaim all liability in respect of any actions taken or not taken based on any contents of this article.

]]>Tue, 03 Dec 2013 18:00:43 GMThttp://www.californiahorselawyer.com/home/what-if-your-horse-injures-a-worker-at-your-boarding-stableThe latest question posed by ProEquineGrooms.com for our "What If?" series - From Liv Gude at ProEquineGrooms.com:Many of us board our horses, for a ton of different reasons. This is a great way to get lessons, have your horse cared for while you are at work, and to meet other like minded folks. Add in shows, clinics, and barn parties and you are set! But what happens if your horse hurts a Groom, Trainer, Assistant, or other barn worker?? Could you get stuck with some medical bills – what if the hurt worker has no personal medical insurance or the employer doesn’t have worker’s compensation? I posed this prickly question to Jenn McCabe, an equine lawyer and horsewoman, not to mention former Pony Clubber and event rider! Jenn is the brains behind the California Horse Lawyer website and blog. This is what Jenn shares with us:

"This one is tricky because it involves a few common misconceptions. A simplified understanding of workers’ compensation insurance might clear a few things up --- Workers’ compensation insurance is purchased by employers. In the event that an employee is injured on the job, the insurance generally covers wage replacement and medical expenses, but the employee must relinquish the right to sue his employer for negligence. (For more details on Worker's Compensation, read this article here.) Notice that I didn’t mention the third-party horse owner in that explanation. That’s because workers’ compensation protects the policy-holder (employer) and his employees, not third parties like boarders. Horse-owners can be sued for damage that their horses cause to people or property; unfortunately, the existence of workers’ compensation insurance does not affect this.However, the existence of a workers’ compensation insurance policy does matter to horse owners because it significantly decreases the chances that the injured employee would need to sue you in the first place. In other words, if the employee is appropriately covered and compensated by his employers’ workers’ compensation policy, then his need to pursue YOU for payment of those same expenses does not exist. It seems like anyone can (and will) sue anyone for anything. If a horse owner is sued, he still has to pay a lawyer to defend him, even if he eventually wins the case. Thus, if you own horses but do not operate a commercial horse business, a private horse owner liability policy can protect you against legal claims that your horse caused bodily injury or property damage to someone. I recognize that this is yet another expense that some horsemen just can’t afford, but the average yearly rate is generally lower than the average attorney’s billable hour (one hour!). Yikes! If you have questions about liability, insurance coverage, or employment law, please don’t hesitate to ask. You canfind Jenn on her website here, and follow along withJenn on Twitter hereandFacebook here.Tons of great information!